IKIO Lighting shares jump 50% in debut trade: should you buy, sell or hold?

Shares of IKIO Lighting delivered a strong listing pop on Friday and the company saw more follow-up buying in the maiden trading session for the company. However, investors are baffled if they should book the profits or hold the stock for the long term. Even those, who did not get allotment, are seeking opportunities for fresh entry.

Earlier in the day, shares of IKIO Lighting were listed at a premium of 38 per cent at Rs 392.5 on National Stock Exchange (NSE) and saw some more following-up buying as the stock surged another 9 per cent to Rs 427.5, taking the overall gains to 50 per cent over the issue price of Rs 285 apiece.

According to some analysts, investors may consider booking profits in the company and re-enter the counter at lower levels. However, others suggest they hold the stock for a longer term as they see more steam left in the company.
IKIO Lighting made its strong debut in the market, which is more than expected, said Anubhuti Mishra, Equity Research Analyst at Swastika Investmart.

"Considering its strong focus on R&D and backward integration, its well-established relationship with clients, and its consistent financial performance we still have a positive view on this thus we will suggest investors hold this share for a longer period by keeping a stop loss 10% below its listing price," she said.
 

"The allottees have received strong listing gains of 38 per cent. Thus, we recommend booking profits. However, investors with higher risk appetite, can hold the for medium to long term," said Prashanth Tapse, Senior VP (Research), Mehta Equities.
Incorporated in 2016, the Noida-based IKIO Lighting manufactures light-emitting diode (LED) lighting solutions. The company is primarily an original design manufacturer (ODM). The company's LED lighting offerings focus on the premium segment.
 

IKIO Lighting made a stellar debut on the exchanges, said Rajnath Yadav, Senior Analyst at Choice Equity Broking, who had assigned a 'subscribe' rating on the issue. "At current levels, it is trading at FY23E P/E multiple of 48.2 times, compared to the peer average of around 52 times. Considering the limited upside, we recommend investors to take an exit from this counter," he said.
Vaibhav Kaushik, Research Analyst, GCL Broking said that IKIO Lighting was expected to list above Rs 380 and existing investors are advised to keep for target Rs 500 and even higher in the next few quarters

IKIO Lighting raised about Rs 607 crore from its initial stake sale, which was open for bidding between June 6-8. The company had a price band of Rs 270-285 apiece for the issue with a lot size of 52 equity shares. The issue garnered a strong response from the investors during the three-day bidding process.
 

The issue was overall subscribed more than 66.30 times, with the portion for qualified institutional bidders was booked 163.68 times; the category for non-institutional investors' category subscribed 63.35 times and the quota reserved for retail investors was subscribed 13.86 times.

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